If you’ve recently sold or are planning to sell a UK property, it’s important to be aware of your reporting obligations to HMRC.

UK Residents

Since 6 April 2020, UK residents have had to make a payment on account of the CGT due and submit a return within 60 days (30 days for disposals prior 26 October 2021) following the completion of a residential property disposal.

Individuals need to estimate their total income for the year when making the CGT payment. Where, after utilising the annual exemption, the gain falls within the basic rate band, the gain will be taxed at 18%; gains falling in the higher rate band will be taxable at 24%.

It is important to be aware you may be required to complete a 60-day report irrespective of whether you are in self-assessment, and penalties and interest apply to late returns and payments.

Disposals of residential property are not subject to the rules where the gain is covered by:

• Principal private residence relief (PPRR)
• The annual exemption
• Unused losses - note that only losses up to the date of the return can be considered. Where losses are realised later in the tax year a refund of overpaid CGT can only be claimed by submitting a self-assessment tax return.

The payments due within 60 days can be based on reasonable estimates where accurate information is not available. An amended residential property return, or self-assessment tax return can then be submitted within normal time limits that will supersede the original residential property return.

If you are looking at disposing of a UK Residential property, or if you require any further information, please get in touch and we will be happy to assist.   

Since 6 April 2020, UK residents have had to make a payment on account of the CGT due and submit a return within 60 days (30 days for disposals prior 26 October 2021) following the completion of a residential property disposal.

Individuals need to estimate their total income for the year when making the CGT payment. Where, after utilising the annual exemption, the gain falls within the basic rate band, the gain will be taxed at 18%; gains falling in the higher rate band will be taxable at 24%.

It is important to be aware you may be required to complete a 60-day report irrespective of whether you are in self-assessment, and penalties and interest apply to late returns and payments.

Disposals of residential property are not subject to the rules where the gain is covered by:

• Principal private residence relief (PPRR)
• The annual exemption
• Unused losses - note that only losses up to the date of the return can be considered. Where losses are realised later in the tax year a refund of overpaid CGT can only be claimed by submitting a self-assessment tax return.

The payments due within 60 days can be based on reasonable estimates where accurate information is not available. An amended residential property return, or self-assessment tax return can then be submitted within normal time limits that will supersede the original residential property return.

If you are looking at disposing of a UK Residential property, or if you require any further information, please get in touch and we will be happy to assist.   

Non-UK Residents

If you are a non-UK resident you are required to complete a return within 60 days following the completion date of UK Land and property disposal, regardless of whether its residential or not. Even if there is no tax due, or you have made a loss, a return is required to be completed.

If you are looking at disposing of UK Land and property, or if you require any further information, please get in touch and we will be happy to assist.